Siemens expands its software portfolio with the acquisition of Altair

The German technology giant Siemens plans to acquire the software company Altair, which specializes in simulation, for an impressive $10.6 billion in cash. This deal represents a significant step in the consolidation of the engineering software industry. Siemens intends to pay $113 per share for the Michigan-based company Altair, which focuses on data analysis solutions for large industrial companies. This move marks Siemens' third-largest acquisition to date and, according to experts, could complete the preliminary consolidation in the engineering software sector, following Synopsys' acquisition of Ansys for $35 billion earlier this year. Roland Busch, CEO of Siemens, emphasized that the acquisition is a logical next step to further expand leadership in the industrial software sector. To finance the purchase, Siemens is considering divesting shares in other business areas. Analysts speculate that Siemens might reduce its stake in Siemens Healthineers. With an expected closing in 2025, the purchase price offers a 19% premium over Altair's last unchanged closing price. Altair's shares have risen by 29% over the past year, standing out against the S&P 500, which has increased by 22%. Although the purchase initially seems expensive, James Moore of Redburn Atlantic sees the acquisition as a strategic consolidation for the company. According to Dealogic data, it is the second largest acquisition in the software sector this year. Citi and JPMorgan acted as financial advisors for Altair. Davis Polk and Lowenstein Sandler served as legal advisors.